Compensation Options With The Immovable Property Commission of Northern Cyprus

The Immovable Property Commission of Northern Cyprus has the authority to compensate for lost property in the following ways:

• Restitution (return of the property)
• Exchange (allocation of alternative property)
• Compensation 
• Additional compensation for loss of use and non-pecuniary damages where the property was a home

We also provide a full overview of compensation for loss of use (IPC) on our homepage.

compensation for loss of use (IPC)

Compensation

Compensation is calculated by the IPC as follows:

1. The market value on 20th July 1974

2. Loss of income and increase in value since 1974

3. Whether the applicant is in possession of any Turkish Cypriot property in the South and whether the applicant is receiving any income from such property

4. Non-pecuniary damages (compensation for harm that does not involve direct financial loss, money is awarded for emotional, personal, or non-financial suffering).

Restitution

Restitution can only be granted by the IPC where:

1. Ownership or use of the property has not been transferred to any person other than the state, provided that restitution does not constitute a threat to national security and public order and is not in a military zone.

2. If ownership or use of the property has been transferred to another person under the laws of the TRNC, restitution is only possible where: A. no improvement has been made to the property, or B. any improvement which has been made to the property is less than the value of the property when it was abandoned, or C. no project for such improvement has been issued by the relevant authorities, the property has not been acquired in exchange of property left in the South of Cyprus.

In the event that restitution is granted, the person who has ownership/use under the laws of the TRNC will be compensated by the TRNC. Restitution in this situation would only take effect after a settlement to the Cyprus problem. In the meantime, the person who has ownership/use under the laws of the TRNC would not be able to sell or improve the property. In the event that restitution is not possible, as outlined above, the Commission can consider offering an exchange or compensation.

Exchange

Where an exchange is proposed, if the value of the property being offered in exchange is more than the value of the property which is the subject of the claim, the applicant will pay the difference.

Where the value of the property being offered for exchange is less than the value of the property which is the subject of the claim, the applicant will be compensated By the IPC for the difference.

In addition to exchange, the applicant shall be entitled to also claim for compensation for loss of use and for non-pecuniary damages. Once a settlement has been reached, applicants cannot make a claim in respect of their property again in the future.

Decision and Friendly Settlement Process

Once the Immovable Property Commission of Northern Cyprus reaches a decision:

• The Ministry issues a Friendly Settlement offer
• If accepted, the settlement is signed and implemented

•        If rejected, a notice of disagreement is issued and the applicant can appeal.

Please complete the enquiry form below to receive more information and discuss your needs. All enquiries treated in the strictest of confidence.